S Korea mulls taxes on cos with excessive reserves

SEOUL, Aug 6 (Xinhua): South Korea's finance ministry said Wednesday that it will levy taxes on companies with excessive internal reserves as part of efforts to funnel corporate money into consumers and revive the lackluster private consumption.

The ministry unveiled a revised tax code to impose an additional tax on companies, which do not spend a certain amount of profits on investment, salaries and dividends. A 10-per cent tax will be levied on lack of the amount.

The additional tax will be applied to about 4,000 companies, whose equity capital exceeds 50 billion won (US$48.5 million) as well as large conglomerates subject to restrictions on mutual investment such as Samsung Electronics and Hyundai Motor.

Another report adds: South Korea's exports of information and communication technology (ICT) products hit a new monthly high due to strong demand for locally-made handsets, a government report showed Wednesday.